Beruflich Dokumente
Kultur Dokumente
2d 438
I.
2
The appellant, Leo A. Quinn, seeks damages under 42 U.S.C. 1983 for
Fourteenth Amendment violations arising from his discharge as Rehabilitation
Director of the Syracuse Model Neighborhood Corporation (SMNC).1 Because
Quinn's claims were dismissed on summary judgment, the facts underlying this
case must be considered in a light most favorable to him.
forever." He went on to assert that federal funding was guaranteed for a number
of years and that, in the not-too-distant future, SMNC would become selfsufficient, relying solely on rents collected from rehabilitated properties. From
this conversation, Quinn inferred a mutual understanding that his position
would be tenured, as consideration for relinquishment of his union job. On this
basis, Quinn accepted the position as Rehabilitation Director, and was
"formally" notified of his "appointment" in a letter from SMNC dated June 23,
1972. The letter was silent concerning the precise terms of his employment.
Four days later, however, the SMNC Board promulgated a "Staff Handbook,"
which stated that "staff is hired on a probationary status for a period of 90 days.
During this time, the individual or agency may terminate the relationship." For
Quinn, this statement reaffirmed his expectation of "tenured" employment.
5
Quinn began his work for SMNC in late June 1972, and remained there until
February 16, 1976. Initially, his annual salary was $16,000, but it was gradually
increased to $18,900 by 1976. His duties, which he performed competently,
included inspection of buildings for possible purchase by SMNC, supervision
of rehabilitation and continuing maintenance, preparation of grant requests, and
development of work schedules.
In the Spring of 1975, White and Quinn learned that some SMNC funds could
not be accounted for. Neither man reported the shortage at that time but,
following an audit conducted in late 1976, independent accountants reported to
the Mayor and Commissioner of Community Development David S. Michel
that approximately $18,000 in tenant rent payments could not be located.
Immediately thereafter, the Syracuse Police Department seized the financial
records of SMNC.
Appellee Michel and his deputy, appellee John Mungovan, then attempted to
elicit an explanation from White, Quinn, and SMNC treasurer James Barbour.
When none was forthcoming, Michel notified the SMNC Board, by letter dated
January 12, 1976, that "the Mayor has requested that all further Community
Development funding . . . be suspended until the police investigation is
completed." A series of meetings with SMNC officials followed, as a result of
which Michel, Mungovan, and Alexander demanded the resignations of White,
Quinn, and Barbour as a prerequisite to restoring funding. Michel informed the
SMNC Board of this decision on January 20, in a letter explaining that the City
had "lost confidence" in the SMNC administration. Michel "emphasized" that
"this position does not imply that criminal actions have occurred but only
responds to the clear evidence that there is a complete lack of administrative
control."
In addition, the City began a publicity campaign designed to coerce the SMNC
Board to fire Quinn. A series of articles appeared in the local Syracuse press
suggesting that Quinn was responsible for the missing funds. For example, the
Syracuse Herald Journal reported that Alexander and Michel had called for the
dismissal of Quinn, but that White's resignation had not been accepted because
he was "cooperating." Similarly, under headlines such as "Mayor Calls for
Firing" and "Hint, Criminal Case," the Syracuse Post-Standard informed its
readers that the case had "taken on a criminal aspect," specifically mentioning
Quinn. Also during this period, Mayor Alexander told at least one city
legislator that Quinn was not cooperating with the criminal investigation, and
would be fired.
10
Faced with this publicity and the threatened termination of its financial support,
the SMNC Board dismissed Leo Quinn on February 16. One week later, the
City restored all funding to the Corporation. At about the same time, a grand
jury was impaneled to consider possible criminal charges against Quinn and
others, an event that attracted considerable media attention. The cumulative
result of this publicity, according to the affidavit of City Counselor Vincent
O'Neill, "left in the minds of many the erroneous impression that plaintiff was
guilty of incompetence, mismanagement or even possibly some type of criminal
activity."
11
The Grand Jury reported the results of its investigation the following April,
concluding that no criminal prosecutions were warranted. Significantly, it
affirmatively stated that Quinn had no responsibility for the financial
management of SMNC, that he was wrongfully discharged, and that he should
be reinstated. After a number of unsuccessful attempts to win reinstatement,
Quinn initiated a state court action, which is still pending, seeking restoration
and back pay. On June 20, 1978, more than two years after his discharge,
Quinn also commenced the instant suit in federal court under 42 U.S.C. 1983,
alleging deprivations of his liberty and property without due process of law. He
named as defendants the City, SMNC, White, Alexander, Michel, and
Mungovan, requesting several million dollars in damages from each. In his
complaint, he alleged that his "wrongful discharge" by SMNC and the activities
of the other defendants, including the City of Syracuse, were deliberate acts
"designed to create the public impression that plaintiff was in some manner
responsible for the shortage of funds . . . and that the problem of said shortage
of funds was being solved with (his) termination." The complaint further stated
that Quinn had been a "permanent employee of defendant, SMNC, with the
understanding that he would remain so employed as long as he faithfully
performed his duties and the defendant corporation remained in existence."
Accordingly, the complaint asserted that Quinn's dismissal, without a prior
hearing, deprived him of his liberty and property without due process.
12
Immediately after filing his complaint, Quinn served notices to take the
depositions of all defendants. They, in turn, declined to comply, largely because
they deemed the requested material "irrelevant." Instead, the City defendants
(the City, Alexander, Michel, and Mungovan) and the SMNC defendants
(SMNC and White) filed motions to dismiss for failure to state a claim. Their
moving papers included a sizeable number of documents disputing several of
Quinn's factual arguments. Yet, on August 30, the City defendants advised
Quinn that they considered "responses to your discovery notices stayed pending
determination of our motion to dismiss." On September 11, oral argument on
these motions was heard by Judge Munson who, at the close of the proceeding,
announced that he might treat the motions as requests for summary judgment
pursuant to Fed.R.Civ.P. 56. He apparently opted for this course, because on
December 12, the defendants filed additional materials in support of summary
judgment. On December 27, Quinn filed papers in opposition, including
affidavits sworn by Quinn, Barbour, O'Neill, and two former SMNC directors,
as well as the Grand Jury Report. Quinn never obtained compliance with his
discovery demands from any of the defendants. Nevertheless, Judge Munson
granted summary judgment to all defendants on June 5, 1979. It is this decision
that is before us.
II.
13
The able district court judge found that, at best, Quinn had alleged "merely"
that he "was discharged . . . amid the publicity surrounding a scandal involving
missing funds." Quinn v. Syracuse Model Neighborhood Corp., No. 78-CV293, slip op. at 7 (N.D.N.Y. June 5, 1979). He failed to submit any proof,
according to Judge Munson, suggesting that "a City official made any outright
Assuming for the moment that the district court correctly explicated the
applicable law, we are compelled to conclude that summary judgment was not
warranted on the record before us. Fed.R.Civ.P. 56(c) provides that summary
judgment is appropriate only when a review of the entire record demonstrates
"that there is no genuine issue as to any material fact." The burden, therefore, is
on the moving party to establish that no relevant facts are in dispute. See
Heyman v. Commerce & Industry Insurance Co., 524 F.2d 1317, 1319 (2d Cir.
1975); Accord, Adickes v. S. H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct.
1598, 26 L.Ed.2d 142 (1970). Indeed, the court "must resolve all ambiguities
and draw all reasonable inferences in favor of the party against whom summary
judgment is sought." Heyman, supra, 524 F.2d at 1320; Accord, 6 Moore's
Federal Practice P 56.02(1) (2d ed. 1976). Thus, when the party against whom
summary judgment is sought comes forth with affidavits or other material
obtained through discovery that generates uncertainty as to the true state of any
material fact, the procedural weapon of summary judgment is inappropriate.
Indeed, it is the very purpose of the trial to establish which party's version of
the contested circumstances best comports with reality.
15
16
We hold that Quinn fulfilled this obligation in the instant case. He alleged that
the appellees engineered a purposeful campaign to thrust upon him the onus of
responsibility for the missing funds. In support of this contention, Quinn has
produced newspaper accounts that imply that he was the culprit. These reports,
moreover, refer to statements made by appellees Michel and Alexander. In
addition, Quinn has submitted affidavits alleging that all defendants took part in
meetings at which his dismissal was discussed, and that at least one defendant
privately advised a city official that Quinn had not cooperated with police.
Finally, the existence of a criminal investigation, the press reports linking
Quinn with that investigation, and the role of the defendants in initiating a
criminal inquiry all make it arguable that they openly charged Quinn with
illegal and immoral conduct.
17
B.
18
We are also of the view that Judge Munson incorrectly formulated the legal
criteria by which Quinn's factual claims must be judged. The "liberty" protected
by the Fourteenth Amendment is "broad indeed," Board of Regents v. Roth,
408 U.S. 564, 572, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972), and the standard
employed below is an unduly restrictive interpretation of this most basic
constitutional guarantee.
19
Roth, supra, 408 U.S. at 573 n. 12, 92 S.Ct. 2701, Accord, Wisconsin v.
Constantineau, 400 U.S. 433, 436, 91 S.Ct. 507, 27 L.Ed.2d 515 (1971).2
20
The case law has set forth a number of elements which, taken together,
constitute a protected interest in liberty. This court stated these requisites
succinctly in Gentile v. Wallen, 562 F.2d 193, 197 (2d Cir. 1977): "to constitute
deprivation of a liberty interest, the stigmatizing information must be both false
. . . and made public . . . by the offending governmental entity." For the purpose
of surviving a motion for summary judgment, Quinn's complaint and supporting
papers satisfy these requirements.3
21
The information involved must, initially, be stigmatizing. Roth, supra, 408 U.S.
at 573, 92 S.Ct. 2701. It must, therefore, call into question the plaintiff's "good
name, reputation, honor, or integrity." Constantineau, supra, 400 U.S. at 437,
91 S.Ct. at 510. In this case, if Quinn can prove the facts he alleges, he will
have established a governmentally imposed stigma. He claims that the
defendants, acting in concert, labored to create a public impression that he was
criminally responsible for the missing funds. As a result, his complaint states,
he "continued to suffer great damage to his reputation; his standing in the
community has been greatly affected; he has become an object of derision and a
target for innuendo and he has been forced to endure great emotional pain and
suffering." These allegations are reiterated in Quinn's affidavit in opposition to
summary judgment, in which he states he has "encountered countless
references to the missing money and my dismissal in both employment and
social relationships." 4
22
In addition, the cases require that the allegations giving rise to the stigma be
false. Gentile, supra, 562 F.2d at 197; Codd v. Velger, 429 U.S. 624, 628, 97
S.Ct. 882, 51 L.Ed.2d 92 (1977) (per curiam). In the instant case, Quinn has
steadfastly maintained that he had no involvement whatever in the financial
affairs of SMNC, and the subsequent Grand Jury Report lends credence to his
claim.
23
Further, the offending governmental entity or actor must make these false and
stigmatizing charges "public." Gentile, supra, 562 F.2d at 197; Codd, supra,
429 U.S. at 628, 97 S.Ct. 882; Bishop v. Wood, 426 U.S. 341, 348, 96 S.Ct.
2074, 48 L.Ed.2d 684 (1976). The district court held that Quinn failed to satisfy
this requirement because he had not demonstrated that "a City official made
any Outright charge." Quinn, supra, slip op. at 7 (emphasis added). Apparently,
the district judge would demand an explicit public statement by a municipal
official accusing the discharged employee of "immoral or illegal" conduct. The
cases, however, do not support such a principle. A subtle campaign designed by
25
generally, Monaghan, Of "Liberty" and "Property," 62 Cornell L.Rev. 405, 43444 (1977). Thus, although the primary source of property rights is state law, the
state may not magically declare an interest to be "Non property" after the fact
for Fourteenth Amendment purposes if, for example, a longstanding pattern of
practice has established an individual's entitlement to a particular governmental
benefit. See, e. g., Perry v. Sindermann, 408 U.S. 593, 92 S.Ct. 2694, 33
L.Ed.2d 570 (1972); Demorest v. City Bank Farmers Trust Co., 321 U.S. 36,
42-43, 64 S.Ct. 384, 88 L.Ed. 526 (1944).
26
In the case before us, Quinn asserts that summary judgment was inappropriate
because the presence of a "legitimate claim of entitlement" remains a disputed
question of fact. He alleges that the Staff Handbook, together with White's
assurances on behalf of the SMNC Board, gave rise to a mutual expectation of
continued employment analogous to that enjoyed by the probationary teacher in
Perry, supra. But Perry recognized that if state law had previously provided that
"no contractual or other claim to job tenure" existed, the teacher would have
enjoyed no protected property interest. 408 U.S. at 602 n.7, 92 S.Ct. at 2700. If
the state has not attempted to wrest a governmental benefit from an individual
claimant through definitional gamesmanship, and state law clearly rejects any
inference of legitimate entitlement, a mutual understanding not grounded in
state law is of no consequence. Here, the relevant statute stated, at the time
Quinn was hired, that he could be discharged "with or without cause," absent
specific contract rights to the contrary. Moreover, Judge Munson concluded,
and our review of New York law confirms, that the duration of an employment
contract in New York must be set forth explicitly, or it shall be terminable at
will. See, e. g., Haines v. City of New York, 41 N.Y.2d 769, 396 N.Y.S.2d 155,
158, 364 N.E.2d 820, 822 (1977); Whitley v. Pacific Industries, Inc., 28 A.D.2d
147, 283 N.Y.S.2d 525, (1st Dept.), Aff'd, 22 N.Y.2d 726, 292 N.Y.S.2d 112,
239 N.E.2d 207 (1967); Parker v. Borock, 5 N.Y.2d 156, 182 N.Y.S.2d 577,
579, 156 N.E.2d 297, 298 (1959); Watson v. Gugino, 204 N.Y. 535, 98 N.E. 18
(1912). Thus, even if Quinn could prove the existence of an oral understanding,
his claim would fail as a matter of law. Accordingly, insofar as Quinn alleged a
protected property interest, summary judgment was properly entered.
IV.
27
A.
28
In a footnote, the district court granted summary judgment for appellee City of
Syracuse, on the ground that Quinn had not alleged an "official municipal
policy" as required by Monell v. Department of Social Services, 436 U.S. 658,
98 S.Ct. 2018, 56 L.Ed.2d 611 (1978). To be sure, "the touchstone of the
1983 action against a government body is an allegation that official policy is
responsible for a deprivation of rights protected by the Constitution." Id. at 690,
98 S.Ct. at 2036. But although the Supreme Court in Monell declared that a
municipality cannot be held liable "on a Respondeat superior theory," Id. at
691, 98 S.Ct. 2018, it explicitly recognized that a "government's policy or
custom" may be promulgated either "by its lawmakers or by those whose edicts
or acts may fairly be said to represent official policy." Id. at 694, 98 S.Ct. at
2038. Quinn has alleged the implementation of a deliberate scheme to invoke
municipal authority in an effort to hold him responsible for the missing funds, a
plan approved by the Mayor and the Commissioner of the relevant municipal
department. Surely the mayor is the one city official whose edicts and acts
represent municipal policy, especially when he joins other high-ranking
municipal officers in devising and successfully implementing the plan. We hold
that if Quinn can prove that Mayor Alexander directed such a campaign to
stigmatize Quinn, he will have stated a claim for municipal liability under 42
U.S.C. 1983. See Owens v. Haas, 601 F.2d 1242 (2d Cir. 1979).B.
29
30
Quinn contends that, by analogy to 1983 suits against individuals, the most
appropriate period is the three-year limitation imposed by 214(2) for actions
"to recover upon a liability, penalty or forfeiture created or imposed by statute."
The City of Syracuse, by contrast, urges adoption of the one year and 90 day
provision of New York General Municipal Law 50-i(1), which applies to suits
"for personal injury or damage to real or personal property alleged to have been
sustained by reason of the negligence or wrongful act of such city . . . or of any
officer, agent or employee thereof." If the City is correct, Quinn's claim against
it is time-barred.
31
We hold, however, that the 214(2) limitations period governs suits under
1983, regardless of the legal status of the defendant under New York law. In
Monell, supra, the Supreme Court held that a municipality is a "person" for
purposes of 1983. Since 1963, this court has consistently stated that 214(2)
applies in 1983 suits against "persons," See Swan v. Board of Higher
Education, 319 F.2d 56 (2d Cir. 1963), even though 50-i(1) includes, within
its terms, city officers, agents and employees. To create different limitations
periods for two similarly situated classes of defendants would create a
distinction without a difference, and would engender unnecessary confusion for
litigants and judges alike. Thus, we hold that the most appropriate limitations
period for suits against municipalities under 1983 is that which has been
heretofore applied in actions against individual municipal officers and
employees.
32
The judgment is reversed and the case remanded to the district court for further
proceedings consistent with this opinion.
SMNC is a not-for-profit corporation created under New York law. At all times
relevant to this suit, the vast majority of its funding was provided by the federal
government and allocated by the City of Syracuse. The district court apparently
assumed, for purposes of summary judgment, that SMNC acted "under color of
state law" as required by 42 U.S.C. 1983, and that its actions constitute "state
action" under the Fourteenth Amendment. We do not have occasion to resolve
this question here, but we contemplate that the district court will address it at an
appropriate juncture below
It is not seriously disputed that Quinn's complaint fulfills the mandate of Paul v.
Davis, 424 U.S. 693, 710, 96 S.Ct. 1155, 1165, 47 L.Ed.2d 405 (1976), that the
alleged imposition of a stigma "occur in the course of the termination of
employment."
The district court, relying on Roth v. Board of Regents, 408 U.S. 564, 573, 92
S.Ct. 2701, 33 L.Ed.2d 548 (1972), suggested that "the charges must involve
imputations of illegal, dishonest, or immoral conduct." Quinn v. Syracuse
Model Neighborhood Corp., No. 78-CV-293, slip op. at 7 (N.D.N.Y. June 5,
1979). Since Quinn alleges that defendants accused him of criminal conduct,
his complaint would survive an application of this restrictive view of Roth.
Still, we are constrained to note that the relevant language in Roth is prefaced
by the crucial phrase "for example." 408 U.S. at 573, 92 S.Ct. 2701. Our review
of analogous cases indicates that stigmatizing information is not limited to
charges of illegality, dishonesty or immorality. See, Goss v. Lopez, 419 U.S.
565, 95 S.Ct. 729, 42 L.Ed. 725 (1975) (suspension from school on grounds of
misconduct stigmatizing); Lombard v. Board of Education, 502 F.2d 631 (2d
Cir. 1974) (charge of mental illness stigmatizing)
5
The appellees raise a number of factual issues, none of which can be resolved in
this court. They claim, for example, that any stigma resulted from the "tone" of
newspaper accounts, not from their specific statements. Further, they allege that
any stigma has been erased by the Grand Jury Report, which vindicated
Quinn's reputation. These factual disputes as well as questions concerning the
appellees' "good faith" and actual involvement in the alleged "conspiracy,"
must await resolution by the trier of fact. See Gentile v. Wallen, 562 F.2d 193,
195 n.2 (2d Cir. 1977)
Judge Munson did not reach this question because he could discern no
municipal policy on which to base 1983 liability, regardless of the applicable
statute of limitations
Appellees' argument that the one year and 90 day period set forth in
N.Y.Gen.Mun.Law 50-i(1) governs claims for damages against individuals
under 1983 must fall before the unbroken line of cases applying the threeyear limitations period of N.Y.Civ.Prac.Law and Rules 214(2) to such claims.
See, e. g., Leigh v. McGuire, 613 F.2d 380 (2d Cir. 1979); Meyer v. Frank, 550
F.2d 726 (2d Cir.), Cert. denied, 434 U.S. 830, 98 S.Ct. 112, 54 L.Ed.2d 90
(1977); Swan v. Board of Higher Education, 319 F.2d 56 (2d Cir. 1963).
Indeed, we note that recent developments suggest the applicability of
N.Y.Civ.Prac.Law and Rules 213(1), the six-year residual statute of
limitations, to suits arising under 42 U.S.C. 1983. Compare State v. Cortelle
Corp., 38 N.Y.2d 83, 378 N.Y.S.2d 654, 655, 341 N.E.2d 223, 224 (1975)
(Breitel, C. J.) ( 214(2) does not apply to "(s)tatutory provisions which
provide only additional remedies or standing (but) do not create or impose new
obligations") With Chapman v. Houston Welfare Rights Org., 441 U.S. 600,
618, 99 S.Ct. 1905, 1916, 60 L.Ed.2d 508, 523 (1979) ("by its terms, as well as
its history, ( 1983) does not provide any rights at all.")
In Fine v. City of New York, 529 F.2d 70, 76 (2d Cir. 1975), we suggested, in
Dictum, that N.Y.Gen.Mun.Law 50-i(1) "would appear to be the most
appropriate" period of limitations for suits against municipalities based squarely
on the Fourteenth Amendment. This question is not before us, and our cautious
suggestion in Fine in no wise answers the question as to the appropriate
limitations period for 1983 suits against municipalities